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Federal Reserve:Meetings/2023 September 20: Difference between revisions
Federal Reserve:Meetings/2023 September 20 (view source)
Revision as of 20:30, 21 September 2023
, 21 September 2023→Employment and GDP
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* Soft landing is a primary objective, that's what they've been trying to achieve for all this time. However, the worst thing they can do is to fail to restore price stability. | * Soft landing is a primary objective, that's what they've been trying to achieve for all this time. However, the worst thing they can do is to fail to restore price stability. | ||
* If there is a government shutdown and it lasts through the next meeting, then it's possible we wouldn't be getting some of the data that we would ordinarily get and we would just have to deal with that. And I don't know. It's hard to say in advance how that would affect that meeting. | * If there is a government shutdown and it lasts through the next meeting, then it's possible we wouldn't be getting some of the data that we would ordinarily get and we would just have to deal with that. And I don't know. It's hard to say in advance how that would affect that meeting. | ||
* '''Economy have been stronger than expected, one of the recent explanations is that household balance sheets and business balance sheets have been stronger than we had understood, and so that spending has held up. But they are not sure about that. The savings rate for consumers has come down a lot. The question is whether that's sustainable. It could just mean that the date of effect is later. It could also be that for other reasons the neutral rate of interest is higher for various reasons.''' | * '''Economy have been stronger than expected, one of the recent explanations is that household balance sheets and business balance sheets have been stronger than we had understood, and so that spending has held up. But they are not sure about that. The savings rate for consumers has come down a lot. The question is whether that's sustainable. It could just mean that the date of effect is later. It could also be that for other reasons the neutral rate of interest is higher for various reasons, or it could also just be that policy hasn't been restrictive enough for long enough.''' | ||
==== Projections ==== | ==== Projections ==== | ||